Investors Purchase High Volume of Applied Digital Call Options (NASDAQ:APLD)

Applied Digital Corporation (NASDAQ:APLD) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 136,979 call options on the company. This is an increase of approximately 83% compared to the typical daily volume of 74,667 call options.

Analysts Set New Price Targets

APLD has been the subject of a number of research analyst reports. Citigroup restated a “market outperform” rating on shares of Applied Digital in a report on Monday, August 3rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. Wall Street Zen downgraded Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Rothschild & Co Redburn set a $22.00 price objective on Applied Digital and gave the stock a “neutral” rating in a research report on Monday, September 21st. Finally, UBS Group started coverage on Applied Digital in a report on Wednesday, September 23rd. They issued a “buy” rating and a $38.00 target price on the stock. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $60.88.

Applied Digital Stock Down 6.0%

Shares of NASDAQ APLD traded down $1.53 during trading hours on Wednesday, hitting $23.81. The stock had a trading volume of 38,782,382 shares, compared to its average volume of 22,611,773. The company has a market capitalization of $6.94 billion, a P/E ratio of -26.75 and a beta of 5.99. The firm’s 50-day moving average price is $27.14 and its two-hundred day moving average price is $32.56. Applied Digital has a 52 week low of $19.00 and a 52 week high of $50.72. The company has a debt-to-equity ratio of 2.88, a quick ratio of 4.01 and a current ratio of 4.01.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Monday, July 27th. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30). The business had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. Applied Digital had a negative net margin of 37.78% and a negative return on equity of 16.42%. Applied Digital’s revenue was up 406.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.24) earnings per share. Analysts anticipate that Applied Digital will post -1.09 EPS for the current fiscal year.

Trending Headlines about Applied Digital

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital secured access to up to 1 gigawatt of potential power capacity in Finland for a large-scale AI campus. The agreement marks the company’s first development opportunity outside the United States and could expand its addressable market, although talks with prospective hyperscale customers are still underway. Applied Digital Secures Up to 1 GW of Potential Power Capacity in Finland
• Positive Sentiment: Wells Fargo maintained an Overweight view on AI and high-performance-computing infrastructure operators, naming Applied Digital among its top picks alongside TeraWulf and Hut 8. The bank expects the group to pursue more than $20 billion in debt financing, potentially supporting capacity growth if tenant credit and delivery schedules remain sound. Wells Fargo keeps AI/HPC operators Overweight
• Neutral Sentiment: The earnings report is the immediate catalyst. Analysts expect sharply higher revenue, building on the company’s prior 406% year-over-year revenue growth, but investors are focused on whether new AI data-center capacity is translating into sustainable margins and contracted revenue. Applied Digital Reports Today: What to Know
• Negative Sentiment: Shares are selling off despite the Finland announcement, tracking weakness across AI data-center developers. This indicates that investors may be prioritizing earnings expectations, financing needs and execution concerns over the longer-term expansion opportunity. Applied Digital Falls Ahead of Earnings
• Negative Sentiment: Investors face substantial balance-sheet and profitability risks. Rising debt, heavy AI infrastructure spending and a history of earnings losses could pressure results, while roughly 21% of the public float is sold short, increasing volatility around the earnings release. Applied Digital to Post Q1 Earnings

Insiders Place Their Bets

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

Large investors have recently bought and sold shares of the business. Two Seas Capital LP acquired a new stake in shares of Applied Digital in the third quarter worth about $1,218,000. Envestnet Asset Management Inc. increased its holdings in shares of Applied Digital by 4.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock valued at $497,000 after acquiring an additional 596 shares during the last quarter. WINTON GROUP Ltd bought a new position in shares of Applied Digital in the 2nd quarter valued at approximately $209,000. Engineers Gate Manager LP acquired a new stake in Applied Digital in the 2nd quarter worth approximately $4,350,000. Finally, Integrated Wealth Concepts LLC bought a new stake in Applied Digital during the second quarter worth approximately $265,000. 65.67% of the stock is currently owned by institutional investors.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.